TaxAdministrationIRS eases tax rule for its multinationals

IRS eases tax rule for its multinationals

IRS has temporarily eased a 1988 ruling to make it easier for US multinationals to bring home money from offshore units

The Internal Revenue Service has issued a rule making it easer for US
corporations to bring home money generated by their offshore subsidiaries, in an
effort to make more cash available during the credit crunch.

The IRS has temporarily widened a 1988
ruling, enabling corporations to borrow money held by foreign subsidiaries
without having to pay the 35% corporate income tax, according
to
Associated Press
.

The current rule permits a company’s foreign units to make a tax-free loan to
the parent company provided it is repaid in 30 days. Over a one-year period, the
company can have outstanding loans from its subsidiaries for up to 60 days.

The temporary rule change enables US multinationals to keep cash from a
single loan for up to 60 days and borrow money for up to 180 days in a one-year
period.

Related Articles

Paul Morton, Tax Director, Office of Tax Simplification

Administration Paul Morton, Tax Director, Office of Tax Simplification

4m Emma Smith, Managing Editor
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

5m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

6m Emma Smith, Managing Editor
HMRC issues updated Trusts Registration Service guidance

Administration HMRC issues updated Trusts Registration Service guidance

6m Emma Smith, Managing Editor
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

8m Emma Rawson, ATT Technical Officer
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

8m Austin Clark, Reporter
Are you ready for the Trusts Registration Service?

Administration Are you ready for the Trusts Registration Service?

8m Helen Thornley, ATT Technical Officer
Advisers bullish despite Brexit concerns

Accounting Standards Advisers bullish despite Brexit concerns

2y Fraser Simpson, Reporter